Make sense of executive incentives with the GRG Variable Remuneration Guide
The alignment of executive performance and rewards is perhaps the most significant remuneration governance issue of our time. Knowing what the market landscape looks like is a critical first step towards reviewing your own at-risk reward and incentive practices in-context, or identifying common alternatives.
The GRG Variable Remuneration Guide offers a comprehensive analysis of the Australian executive incentive landscape. The guide shares key information on short term, long term and hybrid incentive plans; providing information on incentive variables like length of measurement period, typical vesting scales and award deferral practices. It will help you understand how successful ASX 200 companies align executive pay for performance.
Why are variable remuneration plans so important?
The introduction of shareholder voting on Remuneration Reports at AGMs created the risk of a “strike” – 25% or more of the cast votes against adopting the Remuneration Report. The most common cause of such strikes is a failure of the variable structure, either in design or because outcomes don’t match the expectations of stakeholders. Beyond attraction, retention and motivation, there is more pressure than ever for variable remuneration plans to reward the right outcomes, in the right way, rather than just being a “bonus”.